People often find themselves in dire situations that cause for drastic solutions. Unstable finances are circumstances that promote hasty decisions. Sometimes people get behind in their bills due to an unexpected medical expense, or some other unforeseen emergency. Trying to juggle money around only leads to a larger problem. Borrowing money seems to be the only available option to get back on track. This may not be the most clever idea. It only means that now there is another bill to pay. People in desperate situations, and those who have less than admirable credit, are easily taken in by the easy loan companies.
Why easy loans are easy to get
Loan companies offering speedy loans to anyone who applies are so popular because they do no credit checks, and the only requirement for the loan is a bank account. They are usually online companies that provide instant acceptance for amounts larger than what the customer needs. This is the most appealing feature of these loans. People see what they can get, and think that it could be the answer to their money problem. Once an application is complete, the customer receives an answer within one minute. They sign the online documents, and their money is on the way. Sounds good, but this can cause a myriad of problems in the very near future.
Easy loans have many drawbacks
What the customer may fail to realize is that they should read the entire set of documents before they make the commitment to get the loan. These easy loans are so easy because they charge an absurd amount of interest, and fees. The loans are in two major categories, an installment loan, or a payday loan. With either one, payments become difficult to make, and customers are in a worse financial circumstance than before. When getting an easy loan, consumers can pay back as much as three and one half times the money that they borrow.
The negatives are not easily seen
When taking out an easy loan, all consumers are interested in at the time is how much, and how soon. If people are in a bad financial crunch, they want immediate relief. Seeing an interest rate of 645.598 means nothing to them. They do not pay attention to that, only the amount that they requested. An example of an installment loan from one of the easy loan companies is that when a person borrows $500.00, they pay back more than $1,500.00. The payments are about $251.00 per month for the next six months. That kind of loan payment will put the customer is another financial bind.
Easy loans prey on people with low credit scores, and those who are in need of a quick financial fix. People who have engaged in the services of payday loans, title loans, and easy installment loans, have lost more than they have gained. They stand to be in for harassing collection calls, the loss of a vehicle, or having another bill that they are behind on.
Having said that, not all companies offering easy loans are predatory by nature. You can get an easy loan in New Zealand without many of the pitfalls discussed here.